|
 Sixty-one of the 129 companies that received regulatory approval to
use unmanned aircraft are using DJI drones, or 47 percent, far ahead
of its nearest rival, a Reuters review of federal records as of
April 9 shows. Nearly 400 other companies, more than half of the 695
businesses still awaiting approval, have applied to use DJI drones.
Shenzhen-based DJI, whose best-selling Phantom 2 Vision+ drone
retails for around $1,200 in the United States, estimates that it
already has about 70 percent of the commercial market worldwide and
a larger portion of the consumer market.
Federal records also suggest that DJI is quickly expanding its U.S.
market share, thanks in part to a new process speeding federal
exemptions for companies that intend to use drones previously vetted
by regulators.
DJI accounted for about a third of the roughly 50 exemptions granted
by the Federal Aviation Administration (FAA) from last September
through mid-March. But it has claimed just over half of the 89
exemptions received since then.
Industry experts say basic drones such as DJI's are likely to drive
the U.S. commercial market for the foreseeable future, meeting
business demand for uses such as aerial photography for site
inspections, real estate promotions and video production.
The market for more sophisticated unmanned aerial vehicles (UAVs) is
being limited by FAA policy that restricts commercial drone flights
to line-of-sight operations at altitudes of 500 feet (152 meters) or
less. Those rules are complicating efforts by e-commerce giants
Amazon.com and Google Inc to develop high-tech drones capable of
delivering packages over long distances.
"Those limitations effectively rule out larger UAVs, which are not
going to be cost-effective with that sort of restriction," said
Philip Finnegan, the Teal Group’s director of corporate analysis.
"It’s really going to drive things toward the low end of the
market."
The Teal Group expects the U.S. market for commercial drones to
reach $5.4 billion in sales by 2023.
Founded in 2006 by Chinese entrepreneur Frank Wang, DJI generated
nearly $500 million in revenue in 2014, up from $130 million in the
prior year.
It expects to exceed $1 billion in sales this year and is in talks
with investors to raise new capital. A person familiar with the
discussions said DJI, valued at $10 billion, is also pursuing
partnerships.
EASE OF USE
The emergence of a Chinese company as a dominant player in a new
U.S. technology market has so far not raised concerns in Congress.
Other Chinese technology companies including telecom equipment maker
Huawei Technologies Co Ltd. have been accused by U.S. lawmakers of
posing national security risks, hurting their chances of building a
substantial U.S. business.
DJI's U.S. business customers include American International Group
Inc, Commonwealth Edison Co in addition to a host of lesser known
firms in real estate, insurance, energy, agriculture and film and
television.
[to top of second column] |
Due to safety concerns, U.S. companies are banned from using drones
unless they obtain an FAA exemption. The U.S. aviation regulator
proposed rules in February to lift the ban, but final regulations
are not expected until late 2016 or early 2017.
Since FAA began granting exemptions last September, gains have been
limited for DJI’s rivals, whose products are often much more
expensive. DJI's nearest competitor in the U.S. commercial market is
Swiss drone-maker senseFly, owned by Paris-based Parrot, with 8.5
percent of the exempted companies, federal records show.
Sensefly's eBee mapping drone package has a price tag of around
$25,000. More complex systems made by European and U.S. competitors
can cost upwards of $100,000.
DJI has gained its market lead without a U.S.-based sales staff.
Both hobbyists and business customers purchase drones through online
retail outlets and directly from DJI's site, and say they stand out
for their ease of use as well as the low price.
“Everything just works. A lot of other systems require you to tweak
all the settings and parameters," said Paul Callahan, chief
executive of New York-based SouthGate Films, which won FAA approval
this month to use a DJI drone for aerial photography including solar
panel inspections.
Some lawmakers, including Senator Charles Schumer of New York, have
called on the FAA to ease flying restrictions so drones can be used
for a wider array of business applications. Lawmakers have also
argued that restrictions on outdoor drone testing have put U.S.
companies at a disadvantage to foreign rivals, which operate in less
restrictive climates overseas.
Some industry executives say low-end drones like DJI's risk becoming
commoditized and that the more promising market lies in high-end
services such as thermal imaging and 3D mapping. DJI says it has
plans to expand into more sophisticated drones.
(Reporting by David Morgan, Editing by Soyoung Kim and Stuart
Grudgings)
[© 2015 Thomson Reuters. All rights
reserved.] Copyright 2015 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed. |
